The Burgeoning Leads from Healthcare Space- CSL, CUV, AVH

  • Apr 07, 2020 AEST
  • Team Kalkine
The Burgeoning Leads from Healthcare Space- CSL, CUV, AVH

The Australian Securities Exchange healthcare sector has been one of the top-performing sectors in the stock market space in the Australian region over the past one year period. And a few entities from healthcare sector have seen gaining solid share price in the current times, in spite of the market correction that took placein the previous few weeks duration.

The COVID-19 pandemic is rapidly increasing the unpredictability of the market seeing sharp movements in both directions (in green one day and red the next day), a cloud of uncertainty is dangling over the streets across the world. When it comes to what the economic recovery will look like, experts are divided in their opinions.

According to IMF, this pandemic has pushed the globe into a recession, and for 2020, it will be bad or worse than the one faced during the global financial crisis. The economic loss is escalating across all nations, tracking the sharp increase in novel infections and containment measures set in place by authorities.

Do Read: Ray of Hope amid Coronavirus- Potential Vaccine For COVID-19 is Underway

In this article we will acquaint you how these ASX listed healthcare sector players are performing amid COVID-19- CSL, CUV, AVH

CSL Limited (ASX:CSL)

Leading biotech giant CSL Limited (ASX:CSL) is engaged in the development, manufacturing and marketing of pharmaceutical and diagnostic products, human plasma fractions (HPF) and cell culture media. The expertise of the Company lies in the areas of rare and critical diseases along with influenza vaccines.

CSL operates in two primary businesses: CSL Behring, a company which is into biotherapeutics with wide-ranging quality products, and Seqirus, an entity which is into influenza virus. The Company employs ~25,000 people and provides life-saving medicines to more than seventy nations.

COVID-19 Update

The Company revealed that it continues to provide medicines to patients all over the globe, and the top priority of CSL is safeguarding patients and donors. In addition to this, CSL highlighted that the Company has taken measures for supporting the health and well-being of its employees. Moreover, CSL continues to closely monitor the current pandemicfor reducing its impact on business.

Patients & Products-

Furthermore, CSL also stated that the COVID-19 situation evolves, it is closely tracking any impact it could have on operations of CSL.

It is noteworthy that the Company is providing support to the University of Queensland (UQ) in its endeavour for the development of a vaccine for COVID-19 by offering its technical expertise. Being the part of this collaboration, CSL donated MF59®, which is the proprietary adjuvant technology of CSL’s Seqirus business, to the pre-clinical development plan of UQ.

CLINUVEL PHARMACEUTICALS LTD (ASX:CUV)

A global biopharmaceutical Company, CLINUVEL PHARMACEUTICALS LTD is dedicated to developing and producing therapies for patients with various serious inherited and skin conditions. The Company is a pioneer in the field of photomedicine, and its R&D has led to novel remedies for patient populations with a medical necessity for photoprotection, repigmentation as well as genetic defects.

CLINUVEL has a strong product pipeline which provides growth opportunities for the Company-

Source: Company's Report

CUVto launch SCENESSE® in the US in April

On 23 March 2020, CLINUVEL revealed its intention tointroduce its new drug SCENESSE® (afamelanotide) in the United States region, with the initial patient to be receive the treatment post 15 April this year. SCENESSE® was approved in October 2019 by the US FDA to riseexposure of pain-free light in adult patients having any history of phototoxic effectsarising from erythropoietic protoporphyria (EPP) a rare metabolic disorder.

Distribution of SCENESSE® in the United States- The distribution of SCENESSE® is planned in three phases-

  • During Phase I, three selected hospitals along with medical centers would be able to offer therapy to EPP patients;
  • For the second phase, Medicare-Medicaid would require to complete SCENESSE® dossier review and provide an opinion on Local and National Coverage for the therapy;
  • The third and last phase would comprise of direct distribution of the drug maximum of thirty targeted centers that would be accredited and trained by CLINUVEL.

AVITA Medical Limited (ASX:AVH)

An ASX listed biotechnology Company, AVITA Medical Limited is into development and distribution of tissue-engineered cellular formulations for skin replacement and offers products like RECELL and CellSpray, that are used for skin scars and injuries. AVITA Medical operates at global level, and its products are sold under the RECELL System brand for promoting healing of the skin in a wide variety of therapies including chronic wounds, burns, as week as aesthetics.

AVITA’s RECELL System is Therapeutic Goods Administration (TGA) registered in Australia, and in Europe, it had received CE-mark approval.

AVITA Medical Provides Preliminary Top-Line Results

On 6 April 2020, AVITA revealed it preliminary assessments of its top line findings for the three months ended 31 March 2020, together with an operating update relating to the COVID-19 pandemic.

On the basis of preliminary assessment, AVH anticipates its outcomes of operations for the quarter ended 31 March 2020 to indicate-

  • The Company recorded total revenue to be approximately $6.0 million, a rise of nearly $1.0 million or 21 per cent over the $4.9 million recognised during the last quarter.
  • Sales of RECELL in the United States were approximately USD 3.9 million, increased by 22% as compared to the previous quarter.
  • AVH’s Cash totaled to $129.9 million, a rise of $5.2 million from the $124.7 million as reported in the last quarter, driven mainly by the decline in value of the Australian dollar relative to the US Dollars.
  • Commercial metrics:
    • The estimated procedural volumes rose by nearly 23 per cent over the previous quarter.
    • Approximately nine new accounts were added.
    • About 69 cumulative accounts approval received with VAC (Value Analysis Committee).

$2 Billion Opportunity In the US- RECELL is approved for acute thermal burns in patients who are more than 18 years of age-

Sorce: Company's Presentation

Let us now have a look at the stock information of these four ASX listed health care sector players on 7 April 2020-

  • CSL Limited (ASX:CSL)- The stock of CSL closed the day’s trade at $311.990 down by 2.473% from the last closing price, with the market capitalisation at nearly $145.25 billion and almost 454.05 million shares outstanding. CSL stocks 52 weeks high and low price was noted at $342.750 and $189.140, respectively.
  • CLINUVEL PHARMACEUTICALS LTD (ASX:CUV)- The stock of CUV last trade at $20.700 up by 1.222% compared to its previous close, with the market capitalisation at nearly $1.01 billion and almost 49.41 million shares outstanding. CUV stocks 52 weeks high and low price was noted at $45.880 and $12.920, respectively.
  • AVITA Medical Limited (ASX:AVH)- The stock of AVH closed the day’s trade at $0.480, down by 2.041 percent from its last close, with the market capitalisation at nearly $1.04 billion and almost 2.13 billion shares outstanding. AVH stocks 52 weeks high and low price was noted at $0.865 and $0.325, respectively.

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